Solar developer ACME becomes so popular when they generate an offer to accept $ 0.0322354 per KWh for the generation of power at 600MW Solar Farm situated in Rajasthan. This project was secured by a federal body, Solar Energy Corporation of India. Now, due to the impact of corona-virus the developer had decided to cancel the agreement of Power purchasing.
The designer of the panel thought to cancel the signed agreement of power purchasing in 2018 for 600 MegaWatt power project at the base price of Rs, 2.44 per KWh, as he fears about the impact of Corona-virus (Covid-19) commission would affect the project and it will be delayed by six-month. And obviously, the due date was already mentioned in the agreement.
Have You Read This:
Clean energy developer ACME Solar, which achieved a 600 MW project in Rajasthan at the lowest Indian tariff for solar power, wants to abandon the agreement. The project was achieved in 2018 when ACME offered the Solar Energy Corporation of India (SECI) to pay Rs.2.44 / kWh generated after the reverse auction by the tender agency.
However, ACME has now approached the Central Electricity Regulatory Commission (CERC), which is directing SECI and the Power Grid Corporation of India Ltd to stop the bank guarantees and letters of funding, which it has said to secure the contract Was presented.
In its petition, the developer made its decision to terminate the executed Power Purchase Agreement (PPA) with Security, citing the inability to commission the project within the agreed time frame due to supply chain disruptions and delays due to the Covid-19 outbreak. presented. Securing land for commissioning of a required substation as well as associated transmission network infrastructure.
Surprise
"The petitioners [ACME Solar] have terminated the PPI on 7.12.2018, executed along with SECI. The respective state orders have been bound by the High Court of Rajasthan for the status quo. Fatehgarh substation to construct; Covid-19 outbreak and its adverse impact on suppliers' manufacturing facilities from December 2019 including lockdown in China and India; And delays the commissioning of associated transmission network elements by other transmission service providers" its developer wrote in the petition.
ACME said the projects had already been delayed by 15 months, citing non-Covid factors, and would expect further delays due to Covid-19-induced uncertainty.
To reduce the overall capacity of projects for any reason, for a maximum period of 30 months from the effective date of PPI, from the total date of PPI, ie a total of 30 months, provided PPAs filed with SECI. ACME petition continued. “Therefore, considering the extension of six months from the scheduled commissioning date of 8.11.2020, the entire capacity of the projects needs to be commissioned by 8.5.2021.
The PPA does not allow any extension beyond this point for any reason. Due to delays due to large incidents of force, the petitioner cannot execute the projects within the time. Accordingly, the performance of obligations under the PPA has become impossible, and thus void. Therefore, the parties are absolved from their obligations. "
Second reaction
However, SECI has not accepted the unilateral termination of the contract based on the alleged force by ACME. The federal government's solar power body has disputed the force's claim of power, saying that even if such an event is recognized, its impact cannot be expected to continue for more than three months.
SECI also told the regulator that it is considering extending ACME a project deadline and has no intention of encashing or appropriating the developer's bank guarantee if the issues can be resolved by mutual discussion.
Have You Read This:
Since the ultra-cheap payment agreed by ACME for the energy generated by the Rajasthan project and the drawback in Gujarat, analysts have been speculating about whether such solar farms could be made economically viable.
.JPG)
0 Comments